|
 The
Money Management Newsletter: Retirement
Income Planning
Eldercare: 2005
Part 2 of 2: Medical Expenses Tax
Credit
By Anne Chun,
C.A., CFP
Money Management Newsletter - January 2005
Please note new age limit (now age 71, changed in 2007 from 69
This
is part 2 of our 2005 series of articles on Eldercare/CA PrimePlus Services*.
In part 4 of our 2004 series of articles, we discussed Medical Expenses
Tax Credit. The 2004 federal budget proposed some changes, which we
will discuss here.
First, medical expenses paid on behalf of minor children will be added
to the medical expenses of the taxpayer and his or her spouse and will
not be affected by the income of the minor child.
Second, for medical expenses paid on behalf of any other dependent relative,
the amount is limited to the lesser of 3 percent of the dependant's net
income and $1813, and the maximum claim is limited to $5,000.
As a result of the proposed new Disability Supports Deduction
(discussed in part 1 of our 2005 series of articles), the refundable medical
expense supplement (available to taxpayers with a family net income not
exceeding $32,541) will change. This will be equal to 25 percent of the
allowable expenses claimed under the Medical Expense Tax Credit
plus the Disability Supports Deduction, up to a maximum limit of
$562 for 2004. The refundable medical expense supplement is on line 452.
* CA PrimePlus Services
is a registered trademark of the Canadian Institute of Chartered Accountants.
Eldercare/CA PrimePlus Services is a customizable range of financial management
services for elderly and disabled persons.
Anne Chun, C.A. CFP is the principal of Anne Chun Professional Corporation,
providing financial, tax, estate and Eldercare services. She is also the
co-author of "Planning your Financial Future". Find out more
from her web site (www.annechun.ca).
*
* *
|
|
Use this link to load a printer-friendly
version of this document. |
Have a question regarding
this article? Use our feedback form
to send us a note.
©
, Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.
(905) 844-7700
|
